3. Assessing the impact and potential of EPZs in a global economy

Responses by workers' organizations

Trade unions are at the greatest disadvantage in adapting to the new global environment of investment and trade, of which EPZs are a key component. They are having to cope with the simultaneous emergence of a number of problematic trends, including structural adjustment and sluggish economic and employment growth in developed economies which have undermined their traditional industrial support bases and replaced them with growing numbers of atypical workers, often on irregular or insecure contracts in difficult-to-organize sectors such as services. Changes in technology and the organization of work have had an impact on the labour-management relationship and trade unions are having to adapt their organizing strategies to meet those changed conditions. In developing countries the public sector and state enterprises, often a bastion of trade union organization, are being downsized and privatized, and the informal sector accounts for a large proportion of employment. In many EPZ-operating countries trade unions are in a complicated or difficult situation (for political, economic or cultural reasons). Many lack the information necessary to analyse the impact of globalization and, even if they are aware of the implications, they may not have the resources to develop appropriate responses. Given that trade unions find it difficult to gain access to EPZs in most parts of the world, it is even more of a challenge to develop policies and programmes relevant to the needs of zone workers.

Some international trade union federations and workers' support networks have taken up the issue through research and education programmes, often working with and through workers in zones. The outputs of these programmes have cast a critical spotlight on the operation of zones and served to raise awareness amongst workers of their rights. NGOs have taken up the cause of workers in EPZs by establishing information networks, many using the Internet, and by exposing what they consider to be sweatshop conditions. Child labour has received a lot of attention, along with minimum wages, health and safety and hours of work.

Exposing bad working conditions and breaches of workers' rights has proved very effective in the United States, where a number of high profile enterprises and personalities were singled-out for using subcontractors in EPZs which relied on unacceptable labour practices and working conditions. The case of Kathie Lee Gifford, who acknowledged that her line of popular Wal-Mart clothes was being produced under sweatshop conditions in Honduras, served to generate a public debate about what constitutes acceptable labour practices and made many ordinary consumers aware of the production chain that delivers products to their shop shelves. The Gap faced a similar debate regarding the manufacture of its garments in El Salvador, and it has responded to the criticisms by working with NGOs in that country to try to ensure that such abuses are avoided in future. The controversy surrounding the production of Nike products in Bangladesh, Indonesia and Viet Nam has probably been the most acrimonious, and has involved not only trade union and NGO criticisms of their labour practices but even a leaked auditor's report which revealed unacceptable health and safety practices which had not been rectified. This has:

The International Confederation of Free Trade Unions (ICFTU), in addition to its research and publications, has developed a model code of conduct for enterprises which, once adopted, would help to ensure that zone workers' rights and interests are protected. The International Textile, Garment and Leather Workers' Federation (ITGLWF) has also been very active in the field of codes of conduct, as has been the European Trade Union Committee on Textiles, Clothing and Leather (ETUC-TCL). These organizations have negotiated industry and sectoral codes with employers' federations to try to eradicate abusive labour practices, inter alia in EPZs. A recent example can be found in the Code of Labour Practice for Production of Goods Licensed by the International Federation of Association Football (FIFA), reached between FIFA and the ICFTU, the International Textile, Garment and Leather Workers' Federation and the International Federation of Commercial, Clerical, Professional and Technical Employees.

There are a number of constraints which workers' organizations confront in their endeavour to organize workers, especially women, in EPZs. Mauritius is a case in point. An analysis of the failure by the Mauritian trade unions to organize EPZ enterprises noted that cultural factors mitigated against women workers participating in trade union affairs. They have domestic commitments which restrict their ability to attend trade union meetings after work and on weekends. In addition, many women workers assumed that trade union matters were a male domain. EPZ enterprises in general and Asian investors in particular were reluctant to deal with trade unions and had been known deliberately to discourage trade union activities. As a result, contact and communication between trade union organizers and workers was limited. Some enterprises promoted the formation of works councils composed of workers' and employers' representatives, which had the effect of pre-empting trade union organization. The limited amount of trade union education also restricts workers' understanding and acceptance of trade unionism. The trade unions, however, do not have the human or physical resources to expand their educational programmes. Enterprises are also reluctant to allow workers time off for trade union activities.

Trade unions in other EPZ-operating countries face similar constraints to those described above in Mauritius, and they will have to develop methods of labour organization which overcome such difficulties. In some zone-operating countries where the labour movement is unable to extend its organizing activities into the zones, trade unions have resorted to organizing workers in the communities where they live. The missions conducted as part of the Action Programme found a number of community-based advice centres which provide legal assistance, personal counselling and training. These initiatives are designed to inform workers of their rights and to instil the confidence and the organizing skills needed to establish workers' organizations in the zones. The Trade Union Congress of the Philippines (TUCP) has established such centres outside the zones in Subic Bay, Cavite and Laguna. The TUCP launched a renewed drive to organize zone workers in 1997. Activities include door-to-door organizing in the community, the provision of information on workers' rights, education on safety and health and gender questions, the formation of credit and consumer cooperatives, the establishment of family planning clinics and training in organizing skills. The Federation of Free Workers in the Philippines used research, education and training as part of its initiative to build up a network of female trade union organizers. These female organizers try to provide services to women workers to help them solve practical problems and assist them in setting up consumer and credit cooperatives. Women's groups and other NGOs have likewise provided centres, shelters and training courses. The Asian-American Free Labour Institute supports a community-based centre in Sri Lanka which offers advice and training to zone workers. Other community-based initiatives include a food cooperative for women workers, a campaign to combat violence against women workers commuting to and from work at night and an EPZ newspaper published by an independent women's NGO.